A) the employer's right to terminate contributions if a pension plan is adequately funded. B) the employer's right to recapture employee contributions to a pension plan if employment terminates prior to retirement. C) the employee's right to the employer's contributions or benefits attributable to the contributions if employment terminates prior to retirement. D) the employer's right to discriminate against non-highly compensated employees when determining pension benefit levels. A) the employer's right to terminate contributions if a pension plan is adequately funded. B) the employer's right to recapture employee contributions to a pension plan if employment terminates prior to retirement. C) the employee's right to the employer's contributions or benefits attributable to the contributions if employment terminates prior to retirement. D) the employer's right to discriminate against non-highly compensated employees when determining pension benefit levels.

Exam 17: Employee Benefits: Retirement Plans

Which of the following statements concerning defined benefit and defined contribution pension plans is (are)true? I.The employer bears the investment risk with a defined contribution plan. II.Defined benefit plans favor workers who enter the plan at older ages.

(Multiple Choice)

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Question 21

Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are)true? I.Only defined benefit plans are insured. II.Only benefits that are not yet vested are guaranteed.

(Multiple Choice)

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Question 22

Which of the following statements concerning defined-benefit pension plans is (are)true? I.The contribution rate by the employer varies depending on the amount needed to fund the desired benefit. II.The retirement benefit is not known in advance.

(Multiple Choice)

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Question 23

A financial institution that provides for the accumulation or administration of the funds that will be used to pay pension benefits is called a

(Multiple Choice)

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Question 24

Which of the following statements is (are)true with respect to SIMPLE retirement plans? I.Only large employers can start a SIMPLE plan,provided the employer does not maintain another qualified plan. II.SIMPLE plans are exempt from most nondiscrimination and administrative rules that apply to qualified plans.

(Multiple Choice)

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Question 25

Vesting refers to

(Multiple Choice)

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Question 26

Which of the following statements about trust fund plans is (are)true? I.The trustee typically purchases annuities for retiring employees. II.The trustee guarantees the adequacy of the fund to pay the promised benefits.

(Multiple Choice)

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Question 27

Which of the following statements regarding minimum vesting standards for qualified defined benefit plans is (are)true? I.The vesting standards apply to both employer and employee retirement contributions. II.Employers may vest benefits more quickly than the minimum standards.

(Multiple Choice)

4.9/5

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Question 28

As Social Security slants benefits in favor of lower-paid workers,the Internal Revenue Code permits employers to adjust pension contributions so that the overall contributions (pension plus Social Security)are nondiscriminatory.This adjustment permits employers to increase pension contributions for highly-compensated employees.Adjusting contributions to consider Social Security contributions is called

(Multiple Choice)

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Question 29

Which of the following statements concerning defined contribution pension plans is (are)true? I.The contribution rate is fixed. II.The retirement benefit varies.

(Multiple Choice)

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Question 30

Which statement is true with regard to problems and issues with tax-deferred retirement plans in the United States?

(Multiple Choice)

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Question 31

In the context of employee benefits,the term "discrimination" refers to benefit comparisons between

(Multiple Choice)

4.9/5

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Question 32

Which of the following is a common investment mistake that many retirement plan participants make?

(Multiple Choice)

4.8/5

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Question 33

Which of the following statements about the Saver's Credit is (are)true? I.The Saver's Credit is $5,000 regardless of an individual's contribution to a Roth IRA,401(k)plan,SIMPLE IRA,or 403(b)plan. II.The Saver's Credit was implemented to encourage low- to moderate-income earners to save for retirement.

(Multiple Choice)

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Question 34

Rita went to work for a manufacturing company.The company offers a defined-benefit pension plan.The retirement benefit is equal to 1.5 percent multiplied by years of service with the company,and the result is multiplied by average salary in the three highest consecutive years of paid employment with the company.The benefit formula used at Rita's company is a

(Multiple Choice)

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Question 35

RST Company offers a qualified retirement plan.Each employee contributes 4 percent of his or her pretax income to the plan,and RST matches the employee's contribution.An employee's benefit at retirement is determined by his or her account balance at the time of retirement.What type of retirement plan does RST offer?

(Multiple Choice)

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Question 36

Lynn works for a state university.In addition to the university's regular retirement plan,Lynn participates in another retirement savings plan.She elected to have $5,000 of her salary withheld and contributed to a tax-sheltered annuity with an insurer.The type of plan that Lynn established is called a

(Multiple Choice)

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Question 37

All of the following are potential disadvantages to employees covered by a defined contribution pension plan EXCEPT

(Multiple Choice)

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Question 38

Which of the following statements is (are)true regarding cash-balance pension plans? I.Cash balance plans are defined contribution plans. II.Under a cash balance plan,the employer creates an investment account for each employee into which the employer makes actual contributions and allocates investment gains and losses.

(Multiple Choice)

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Question 39

Which of the following statements is true with regard to defined benefit and defined contribution pension plans?

(Multiple Choice)

4.9/5

(82)

Question 40

Showing 21 - 40 of 50

Which of the following statements concerning defined benefit and defined contribution pension plans is (are)true? I.The employer bears the investment risk with a defined contribution plan. II.Defined benefit plans favor workers who enter the plan at older ages.

Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are)true? I.Only defined benefit plans are insured. II.Only benefits that are not yet vested are guaranteed.

Which of the following statements concerning defined-benefit pension plans is (are)true? I.The contribution rate by the employer varies depending on the amount needed to fund the desired benefit. II.The retirement benefit is not known in advance.

A financial institution that provides for the accumulation or administration of the funds that will be used to pay pension benefits is called a

Vesting refers to

Which of the following statements about trust fund plans is (are)true? I.The trustee typically purchases annuities for retiring employees. II.The trustee guarantees the adequacy of the fund to pay the promised benefits.

Which of the following statements regarding minimum vesting standards for qualified defined benefit plans is (are)true? I.The vesting standards apply to both employer and employee retirement contributions. II.Employers may vest benefits more quickly than the minimum standards.

Which of the following statements concerning defined contribution pension plans is (are)true? I.The contribution rate is fixed. II.The retirement benefit varies.

Which statement is true with regard to problems and issues with tax-deferred retirement plans in the United States?

In the context of employee benefits,the term "discrimination" refers to benefit comparisons between

Which of the following is a common investment mistake that many retirement plan participants make?

All of the following are potential disadvantages to employees covered by a defined contribution pension plan EXCEPT

Which of the following statements is true with regard to defined benefit and defined contribution pension plans?

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Enterprise Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Government Regulation of Insurance

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance and Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform;individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Social Insurance

The Liability Risk

Auto Insurance

Auto Insurance Continued

Homeowners Insurance,section I

Homeowners Insurance,section II

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

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